Evidentiary Hearing
The DCPSC has scheduled an evidentiary hearing in this case for October 13-14, 2026.
The Commission will announce the exact location and time of the hearing in a forthcoming public notice.
Overview
Pepco filed an application for a second Multiyear Rate Plan (MRP), known as the "Climate Ready Pathway," in April 2023 for the years 2024 through 2026. After a comprehensive review process, the Public Service Commission of the District of Columbia (DCPSC) approved a modified, extended pilot version of this rate plan in November 2024. The decision reduced Pepco's initial $190.7 million request by about 35%, allowing a $123.4 million increase over two years (2025–2026). At that stage, the rate case was considered settled, and the new rates were implemented.
However, in March 2026, the District of Columbia Court of Appeals vacated the Commission's approval and sent the case back for further proceedings. The Court determined that a formal evidentiary hearing would be required to resolve factual disputes. To address this, the Commission has established a revised schedule and has decided that the currently billed electric distribution rates will remain in place while this review is conducted.
The now-vacated order originally included the following key measures:
- Consumer protection: Low-income customers in the Residential Aid Discount (RAD) program remain exempt from rate increases, continuing to receive free electric distribution services.
- Enhanced oversight: Quarterly and annual reporting requirements, independent audits, and automatic credit adjustments to address overearning.
- Accountability: A $15.3 million penalty on Pepco for prior billing errors and reductions in recoverable capital expenditures by 19% in 2025 and 40% in 2026.
Under the vacated order, average monthly residential bills would have risen by $7.54 in 2025 and $3.80 in 2026, with $1.00 monthly increases in customer charges. Approximately 41% of the approved revenue increase would have been allocated to residential customers. The Commission has also convened a working group to explore expanding the RAD program, which currently benefits 20,000 households.
Current Status
The DCPSC has formally initiated the remand proceeding directed by the Court of Appeals. Following the Court's decision, the Office of the People's Counsel (OPC) and the Apartment and Office Building Association of Metropolitan Washington (AOBA) filed motions requesting that the Commission immediately suspend the current electric rates, restore rates from before January 1, 2025, and issue refunds to customers. Pepco requested an expedited hearing and asked the Commission to keep the current rates in place.
The DCPSC officially decided to maintain the currently billed electric rates for the duration of the review period. After reviewing supplemental legal briefs, the Commission denied requests to suspend the current rates, restore previous rates, or issue immediate refunds, noting that any final adjustments will be made after the review is complete.
To ensure a transparent review, the Commission has directed Pepco to provide updated financial data based on actual spending from 2024 and 2025, rather than past forecasts. The procedural schedule has been extended to give all parties time to review this new information, and the evidentiary hearing is now scheduled for October 13-14, 2026.
The DCPSC continues to monitor Pepco's performance and compliance. As part of this oversight, the Commission issued an order to address the future of the Senior Citizen and Disabled Residents Rate Credit (SCADRRC) after its initial funding was exhausted. To prevent the program from ending abruptly, the Commission authorized a one-year regulatory asset capped at $1.5 million to continue the credit from October 1, 2025, through September 30, 2026. The Commission also hosted a technical conference on November 12, 2025, to evaluate the impact and feasibility of continuing the SCADRRC.
These actions ensure that Pepco's rates remain aligned with Commission directives, consumer protections, and the District's climate and affordability goals.
Hearings
Community Hearings
The DCPSC held three community hearings across the District (in Wards 8, 5, and 2) in March/April 2024 to gather input from residents and other stakeholders in this pending rate case.
Watch a full recording of the April 3, 2024, hearing held in the DCPSC Hearing Room:
Legislative-style Hearing
On July 30, 2024, the DCPSC convened a legislative-style hearing for Pepco to present oral arguments on FC1176 rate case issues fundamental to the Commission’s decisions. Key topics included Pepco’s investment strategies, alignment with the District’s climate goals, communication with the District, and the merits of traditional versus multi-year rate cases.